ENTREPRENURESHIP DEVELOPMENT Evolution of the Concept of Entrepreneur In early 16th century, it was applied to those who were engaged

in military expeditions. In 17th century it was extended to cover civil engineering activities such as construction It was only in 18th century that the word was used to refer to economic aspects, Since then, the term entrepreneur is used in various views. These views are broadly classified into 3 groups, namely, risk-bearer, organizer & innovator. Evolution of the Concept of Entrepreneur Entrepreneur as a Risk-Bearer Entrepreneur as an organizer Entrepreneur as a innovator Definitions Derived from French word Entreprendre means to undertake. Richard Carleton: A person who buys factors of production at certain prices in order to combine them into a product with a view to sell them at uncertain prices. Considered as a risk bearer. Ex. Farmer pays definite price for seeds, fertilizers, pesticides, labours etc but not certain at which price he could sell his produce. F.H. Knight: A person who bears uncertainty (risk which cannot be insured & is incalculable) can be reduced by taking insurance. J.B.Say:One who combines the land of one, labor of another & capital of yet another & thus produces a product. By selling product pays rent, wages and interest. Peter F Ducker: One who considers the changes that take place in market as an opportunity to do business? Innovation is his tool. Joseph Schwnpeter: Individuals who introduce something new in the market or economy. New Encyclopedia: An individual who bears the risk of operating business in the face of uncertainty about the future conditions.

QUALITIES OF ENTREPRENUERS Mental ability: intelligent person Organizing ability: good organization. Hard work: ready to work for long hours. Discipline: highly disciplined-everything to be in order for them. Clear objectives: regarding nature of business & products to be produced. Need for high achievement-they have a strong desire for achieving something great. Optimistic: highly optimistic-not disturbed by present problems-hope favorable future. Risk taking: they like challenges. H .R.ability: Maintain good relations with other people (employee, vendors, customers, bankers). Emotional stability: Have considerable amount of self-control-business pressure can be handled. Communication ability: good communication. Self-confidence: tackle problems immediately with self-confidence. Adaptability: highly flexible-adapt themselves for any conditions. Positive attitude: Always think positively, they do not leave hopes even under difficult conditions. They are also good managers, pro-active, realistic, have comprehensive awareness & conceptual ability.

Difference between an Entrepreneur & a Manager Points Entrepreneur Manager

Motive

Is to start a venture by setting up an enterprises.

Is to render his services in an enterprise already set up by someone An manager is the servant in the enterprise owned by the entrepreneur. A manager as a servant does not bear any risk involved in the enterprise

Status

An entrepreneur is the owner of the enterprise

Risk bearing

An entrepreneur being the owner of the enterprise assumes all risks & uncertainty involved in running the enterprise Profits which is highly uncertain

Rewards

Salary as reward for rendering his services & salary of the manager is fixed But, the manager does is simply to execute the plans prepared by the enterprise.

Innovation

Entrepreneur himself thinks over what & how to produce goods to meet the changing demands of the customers

Functions of an Entrepreneur Idea generation & scanning of the best suitable idea Determination of the business objectives Product analysis & market research Determination of form of ownership/ organization Raising necessary funds Procuring machine & material Recruitment of men Undertaking the business operations

Types of Entrepreneurs According to Danhof Innovating Entrepreneurs Imitative Entrepreneurs Fabian Entrepreneurs Drone Entrepreneurs Innovative Entrepreneurs Innovative Entrepreneurs Adventurous entrepreneurs who attempt to put attractive possibilities in to practice are included under this type. They utilize a chance to introduce a new technique or a new product. They mobilize sufficient capital to start an enterprise befitting to this possibility. These types of Entrepreneurs introduce new product and new production techniques and find out the new markets for their product. Imitative Entrepreneurs This type of Entrepreneurs attempts to imitate innovative entrepreneur. They imitate the techniques and activities of others The Entrepreneur of the developing countries belongs to this type. FABIAN ENTREPRENURE Entrepreneur who attribute preference To Customs, Religion Tradition and Past habit comes in these categories. Being shy and lazy this type of entrepreneur are very cautious to accept changes and they view changes with suspicion. Being Reluctant to face risk, they continuously follow the footsteps of their predecessors.

Drone Entrepreneur These entrepreneurs are unwilling to make any change in the production system, even if the system causes losses repeatedly. They never try to rise in accordance with the opportunities or to accept the warning given by times. Even if their products have lost marketability and the activities of the enterprise have been proved to be uneconomical and the enterprise has been thrown out of the market. Following is a list of Entrepreneur who are not included by DANHO Individual Entrepreneurs & Institutional Entrepreneurs Technological Entrepreneurs Inherited Entrepreneurs Instigated Entrepreneurs Solo Operators Active Partners Innovators Buyers Entrepreneurs Life Timers Challengers INHERITED ENTREPRENEUR Sometimes people become entrepreneur when they inherit family business. Entrepreneur of large scale business concern like TATA, RELIANCE, BIRLA, KHAITAN Individual Entrepreneur & Institutional Entrepreneur Majority of Entrepreneur belonging to the small scale industry sector are individual entrepreneur. Entrepreneur of this type are found in plenty in any country. They enjoy the benefits of flexibility, Quick decision making. Individual Enterprise is not able to grow or develop beyond a limit.

So its become necessary to institutionalize enterprises when entrepreneurial skills are to be coordianted , it becomes necessary for a team of entrepreneur to work united and the enterprise gains an institutions nature. TECHNOLOGICAL ENTREPRENEUR Educated young men and youth self employment began to pour into business sector at a time when the problem of unemployment began to threat to the society and technical and scientific advancements started creating changes in the economic structure of the nation. Instigated Entrepreneurs Person who have become entrepreneur due to the pressure exerted on them by circumstances are termed as instigated entrepreneurs. For example Traditional handicraft products and business men are forced to enter into business on account of the decline of usages of Handicraft goods Other types of Entrepreneurs Solo operators: These are the entrepreneurs who essentially work alone and if needed at all employ a few employees. In the beginning most of the entrepreneurs start their enterprises like them. Active partners: Active partners are those entrepreneurs who start or carry on an enterprise as a joint venture. It is important that all of them actively participate in the operations of the business. Innovators: Such entrepreneurs with their competence and creativity innovate new products. Their basic interest lies in research and innovative activities. Buyers entrepreneurs: These are the entrepreneurs who do not like to bear much risk. They do not take the risk of production but take the risk of marketing a product i.e. wholesaler and retailer. Life timers: These entrepreneurs believe business as an integral part of their life. These entrepreneurs actually inherit their family business i.e. goldsmith, potter etc. Challengers: These are the entrepreneurs who initiate business because of the challenges it presents. They believe that No risk, No gain. When one challenge seems to be met, they begin to look for new challenges Types of Entrepreneurs Business Entrepreneur: Idea Generator Trading Entrepreneur: Exchange of Goods & Svs , Mktg & Brand Building

 Industrial Entrepreneur: Manufacturer first & Innovator Next Agriculture Entrepreneur: Develops Agri Based Activities Technology Based : Technical Entrepreneur : Highly Skilled in product Crafts men. Focuses mainly on Product Design Non- Technical Entrepreneur : Focuses on Mktg, Distribution& designing the cheaper product. Professional Entrepreneur : Who creates new technology or idea & sells it to others for money & Moves to next level of creation Motivational Based : Pure Entrepreneur : Who creates jobs rather seek a job Induced Entrepreneur : Who is encouraged by govt. bodies Motivated Entrepreneur : Who creates jobs rather seek a job Entrepreneur VS. Intrapreneur A new brand of Corporate entrepreneurs called Intrapreneur . In Big Organization, the top executives with Entrepreneurial talents are encouraged to generate new ideas and then convert then into products through research and development carried out within the organization. This concept of Intrapreneurship has gained popularity in Developed countries like America. Is the managements are not receptive to their ideas they, they tend to leave their parent organisation and start Ventures of their own. ENTREPRENEUR V/S INTRAPRENEUR ENTREPRENEUR INTRAPRENEUR

Independent

Dependent

Need not to be Highly Educated

Highly Educated

Fund Raising

No Fund Raising

Risk Bearing

No Risk Bearing

Routine Work

Specialist

Operation From Outside

Operation From Outside

Strong Authorities

Strong Authorities

Characteristics of Intrepreneur Understand the Environment Visionary Flexible and Create Management option Encourage Team work Encourage Open Discussion Build a Coalition of Supporters Copreneur Copreneur are couples into business and having personal relations too. Couples here could be anyone like Husband - Wife, Copreneur When a Married Couple share ownership, Commitment and Responsibility for a business they are called Copreneur. The concepts of married couple working together in a business is as old as the family itself. ONTREPRENEUR / NETPRENEUR In these day of information technology one can become an entrepreneur very easily by launching online business. The Internet has changed the concepts of everything including the business.

With a small investment, any person can set up a website and look for potential customers in the line of business that he offers. An Individual who launches a new business or an innovation through the internet has been called Ontrepreneur and also know as Netpreneur .